A dependable HVAC system is vital for a comfortable and energy-efficient home, but it’s also a major investment. You deserve the most effective comfort solutions available, which is why HVAC rebates are so worthwhile. They can help make sure high-efficiency furnaces, air conditioners and other equipment is more budget friendly.

HVAC efficiency standards are climbing next year, so now’s an ideal time to explore your options. A variety of companies, organizations and even government entities are promoting rebates in 2023 to help everyone secure a new, high-efficiency HVAC system.

Furnace Rebates Require High Efficiency Models

Lots of manufacturers of high-efficiency furnaces extend rebates toward buying a new system. These furnaces incorporate energy-efficient components such as variable-speed blower motors, which allow the thermostat to refine how much heating is released. It’s a great way to lower energy use overall. Local utilities also offer furnace rebates since less energy use results in less strain on the local energy grid.

The government’s ENERGY STAR® program is also helpful for obtaining a furnace rebate. You can enter your ZIP Code to learn which rebates you could be qualified for. Equipment with the ENERGY STAR® rating means it meets your region’s standards for energy-efficient comfort.

Rebates for Air Conditioning Systems

Many of the same rebates for high-efficiency furnaces are also applicable to air conditioners. You can save hundreds on new installation for a system from a leading brand like Lennox. Just check with your local utility companies to verify which makes and models are entitled. What’s more, you can usually combine federal and local rebates for even more savings. Don’t hesitate to see what all you can find, because it can easily add up to 10% of a new, high-efficiency cooling system

Potential Rebates for Smart Home Accessories Like Smart Thermostats

A smart thermostat is a particularly valuable upgrade to your home comfort system. With intelligent programming, you can fine-tune the daily schedule. Utility companies highly value this kind of efficiency, and so most offer rebate programs for new smart thermostats. After some time, these rebates virtually permit you to get a free smart thermostat!

These utility companies also create programs where they exchange lower rates for the ability to adjust your thermostat during peak energy use. This helps avoid strain on the grid, namely when heat waves or cold fronts arrive. When participating in this program, your thermostat will automatically be adjusted by a few degrees.

Other Incentives: High Efficiency Products and Home Improvement Credits

Somewhat different compared to rebates, tax credits are also offered for the purchase and installation of energy-efficient HVAC systems. For example, the Inflation Reduction Act reactivated a program in 2021 that provided credits for up to 10% of the project’s cost. The updated credits are now worth 30% of the cost and may be claimed each year rather than only once. These credits are obtainable for a much greater variety of projects, including home energy audits, electrical, insulation, ventilation, and even your doors and windows! The programs are designed to provide the most benefits for lower-income households, maximizing the improvements to HVAC efficiency all over the country.

New Legislation for Heat Pump Rebates

The recently passed Inflation Reduction Act included separate legislation called the High-Efficiency Electric Homes and Rebates Act, or HEEHRA. This incentive is especially aimed toward heat pump technology, which transfers heat instead of generating it by igniting fuel. To encourage more people to change to this energy-efficient comfort system, these rebates are substantially higher compared to incentives for AC units and furnaces.

If the household’s income is below 80% of the local median, you are able to use the rebates to cover 100% of the costs of a new heat pump. Households that meet 80-150% of the typical income can pay for 50% of equipment and installation costs.